About
Chegg, the student hub, is transforming the way millions of students learn by connecting them to the people and tools needed to succeed throughout their high school and college career. Students nationwide use Chegg 365 days a year to make learning easier, more accessible and more productive. Since it launched nationally as a textbook rental company in 2007, Chegg has enhanced education for millions of students by saving them time, saving them money and helping them get smarter.
Thesis
Chegg has established a leading brand with college students by developing the leading textbook rental service. The Company is well-positioned to leverage its brand and relationships with college students to develop a very large and profitable business.
People
CEO Dan Rosensweig has a strong track record in growing emerging online and consumer technology businesses. He was previously CEO and President of Guitar Hero, COO of Yahoo!, and President of ZDNet.
Key Board Members:
- Chien Chi-Hua of Kleiner Perkins
- Ted Schlein of Kleiner Perkins
- Deven Parekh of Insight Venture Partners
Management Team
- Aayush Phumbhra, SVP, Founder
- Previously an analyst at Wells Fargo Home Mortgage + management consultant at Bearing Point
- Andy Brown, CFO
- Previously CFO of Palm, Inc.
Product
Chegg offers an array of required and non-required scholastic materials including millions of textbooks in any format, access to online homework help and textbook solutions, course organization and scheduling, as well as college and university matching tools and scholarship connections.
Potential
According to the National Retail Federation, college students spend about $10.5 billion annually on college-related expenses, 55% of which is spent on consumer goods and services, primarily travel, apparel, textbooks, and entertainment. Chegg’s opportunity is to capture a significant share of this market through its online student hub. By leveraging its relationships with students who have used Chegg’s textbook rental service, the Company can capture a greater share of student spending by offering a variety of products and services designed to help students succeed.
Megatrends
- Knowledge
- Internet
- Brands
- Demographics
How Big Can This Be?
Chegg has developed a large business in the textbook market and can grow significantly by offering additional products and services and by developing customer relationships with high school students who are preparing for college.
Predictability
With students in college for an average of nearly five years, Chegg can leverage customer acquisition costs over multi-year, multi-purchase period. Textbooks and related products and services represent recurring revenue opportunities for Chegg throughout a student's academic life.
Risks
Seasonality of business, significant infrastructure costs associated with textbook rental service, and variable ROI on textbooks. Numerous competitors including publisher-supported joint ventures.
